Time to fix the roof in Turkey’s economy before rain and storm come

There is a strong possibility that the synchronized growth period all over the world could come to an end soon and the interest rate hikes could accelerate. This would certainly be an unfavorable situation for the world economy and the developing countries, in particular.

Turkey is certainly among such countries quite vulnerable to rapid and frequent changes in financial factors such as foreign exchange rates that have severe negative impacts on import costs, balance of payments and budget deficits, not to forget the triggering effect on inflation. The fact that Turkey’s administration has been coping with major issues in economy (alongside with politics) is no secret and often pronounced by top members in the cabinet, such as Deputy PM SIMSEK.

Therefore it is highly recommended by experts that it would be best to grow own capital by taking new partners, going public rather than borrow money, in this risky period. The bitter fact is it could be possible to control expenses but what about if the demand factor to bring revenues for businesses goes weak and there is not much to be done to balance the budgets – a very typical scenario often faced in the past. That is exactly why experts strongly recommend “not to grow” via borrowed money and prefer own sources.

In other words it is time to fix the roof prior to the arrival of rain and storm in economy. This undesired situation has occurred many times in the past giving big harm to establishments with “insufficient safety precautions” taken as due. Therefore it could certainly help to consider the bitter lessons to be taken from the past.